Clints Stonework Corporation was organized on January 1 2015

Clint’s Stonework Corporation was organized on January 1, 2015. For its first two years of operations, it reported the following:

Net income for 2015 $ 31,800

Net income for 2016 42,800

Dividends for 2015 13,300

Dividends for 2016 18,400

Total assets at the end of 2015 131,000

Total assets at the end of 2016 263,000

Common stock at the end of 2015 90,000

Common stock at the end of 2016 90,000

Required:

On the basis of the data given, prepare a statement of stockholders’ equity for 2016.

Solution

Clint\'s Stonework Corporation Stockholders Equity For the year ended December 31 2016 2015 Common stock $90,000 $90,000 Retained Earnings: Opening Retained earnings       18,500           - Net Income       42,800     31,800 Less: Dividends (18,400) (13,300) Retained Earnings to stock holders        42,900        18,500 Total stockholders\' Equity 132,900 108,500